This guide explains how to convert video so that it can be played on PS3 using Avidemux.  I had a bunch of videos (documentaries) that were in xvid (.avi) format.  When I would play them on my PS3, some would play very choppy with distorted sound.  Others would play with no sound at all.  I managed to figure out a way to convert the videos so that they could be played on PS3.

Use the following steps to convert the video to a .mp4 file that will be playable on your PS3…

1. Install Avidemux (this is available for both Windows and Linux).
2. Open the file which you would like to convert in Avidemux.
3. Select the following…

   Video: MPEG-4 ASP (lavc)
   Audio: AAC (FAAC)
   Format: MP4

4. Click “Save”  and save the file as a .mp4 file.

The newly created .mp4 file will be playable on your PS3.